Michigan Department of Transportation

Michigan Department of Transportation

All taxes paid at the pump would go to transportation and sales tax goes

to schools & cities..

May 5th Ballot

• Fuel tax increase– Tax Rate for Gasoline & Diesel the same at 14.9%, although prices vary

• Gasoline :  19 to 41 cents• Diesel fuel: 15 to 46 cents

– New Diesel‐equivalent tax on CNG– Remove 6% sales tax from fuel

• Registration fee increase of about 30% for:– New cars starting in 2016– Trucks over 26,000 lbs.– Takes effect over 3 to 14 years

• $1.2 billion/year more for MTF– 39% to county roads; 22% to city streets

• Grows with consumer prices; not more than 5₵/year

• Road-agency distributions rise by 60% in 2018

• $112 million/year for CTF by 2018• Early payment of STF debt service• Flexible use of state aid for Detroit buses• Improved road crossings on rural railroads• No change to formula

• $300 million/year more for School Aid Fund• $100 million/year more for revenue sharing• $20 million/year more for DNR marinas and

ORV trails• Additional funding for community colleges

May 5th Ballot

• Sales tax rises from 6 to 7%

• Gas tax increases; sales tax removed from fuel– Tax at pump rises up to 12₵/gallon in Oct. 2015

• Earned-income tax credit increased from 6 to 20% of federal credit; eligibility is broadened

• Registration fee increase of about 30% on new cars starting in 2016

• Registration fee on hybrid-drive cars increased by $25/year

• Registration fee on electric cars & plug-in hybrids increased by $75/year

• Diesel fuel tax is increased; sales tax is removed from Diesel fuel

– Total tax on Diesel fuel rises 12₵/gallon in October, 2015

• No registration fee increase on medium trucks

• Registration fee rises by $600/year on typical heavy truck

• Sales tax rises on retail purchases

• Enlarged assistance to small-business development

• Increase use of pavement warranties by local agencies, where possible

• County road agencies required to use competitive bidding for projects of a certain size

• Townships contributing more than 50% to cost of county road project may require competitive bid

• Performance-driven maintenance contracting by 7 largest road agencies

• Roadway conditions significant factor in 1/3 of Michigan traffic fatalities– 938 traffic fatalities in 2012

– 4,620 traffic fatalities from 2008 through 2012

• Motor vehicle crashes cost Michigan $8.1B/year– $812 for each resident

• $100M spent on highway safety improvements will save 145 lives over 10-year period

May 5th Ballot

This happens only if the constitutional amendment is approved by voters on May 5th. All proposed changes are tied to the outcome of the sales tax ballot referendum.

• www.michigan.gov/roadfunding• www.michigan.gov/realitycheck

• Deteriorating road & bridge pictures from all regions

• Governor used these at press events last fall

• Making Michigan Move: Our Roads, Mobility & Economy

• How Michigan Funds Transportation• Pavement – Designing, Building, and

Maintaining Michigan State Highways • Which Roads to Fix?• Making Michigan Soar, Our Airports

Connecting Michigan to the World• Truck Weights in Michigan• MDOT Efficiencies

• Michigan Gas Tax• Stability Needed for

Transportation Funding• Road Repair Costs Increase

with Inflation...• Is Michigan a “donor state?”• Invest in roads or pay for

vehicle repairs?• The Average Cost of

Maintenance• How much do state roads

need?

• Plain Facts about MDOT’s Revenue, Cost-Cutting & Investment

• Special Message on Revitalization of Michigan’s Deteriorating Infrastructure

• Fast Facts• Michigan’s Truck-Weight Law

& Truck-User Fees

• MDOT Economies, Efficiencies & Innovations

• MDOT Continues to Work to Maximize Michigan’s Resources Despite Funding Shortfalls

• Myth #1: Michigan’s roads and bridges aren’t that bad, and there are plenty of other priorities.

• Myth #2: MDOT has gotten dangerously stingy with salt, and they need to use more!

• Myth #3: Road crews just throw some asphalt in the potholes to fix them. They need to fix them right the first time so it lasts.

• Myth #4: Ohio’s roads are so much better than Michigan’s. MDOT needs to learn how Ohio does it so they can build better roads.

• Myth #5: Michigan needs to learn how to build roads that last. Or at least, MDOT needs to hold contractors responsible when repairs don’t hold up.

• Myth #6: Michigan has one of the highest gas taxes in the country. Our roads are awful, so road agencies must be wasting our money.

www.michigan.gov/roadfundingwww.michigan.gov/realitycheck